Sri Lanka: Dry Zone Urban Water and Sanitation Project

Sovereign Project | 37381-013

Summary

L2477

The Project has three principal thrusts to support research and data collection, institutional development, and infrastructure investment. It comprises three components: Component 1 covers the rehabilitation, expansion, and development of water and sanitation infrastructure for major towns in the northwestern dry zone (Chilaw, Mannar, Puttalam, and Vavuniya), including urban and periurban water supply, and septage management and sanitation. Component 2 provides the foundations to (i) support decentralization of service delivery functions to regional offices; (ii) improve water resource management, coordination, and planning ability; and (iii) increase public awareness. Component 3 is designed to strengthen institutional capacity for project management and implementation activities.

L2977

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Dry Zone Urban Water and Sanitation Project
Project Number 37381-013
Country Sri Lanka
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0129-SRI: Dry Zone Urban Water and Sanitation Project
Asian Development Fund US$ 23.22 million
Loan 2477-SRI: Dry Zone Urban Water and Sanitation Project
Asian Development Fund US$ 59.78 million
Loan 2977-SRI: Dry Zone Urban Water and Sanitation Project - Additional Financing
Asian Development Fund US$ 40.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Water and other urban infrastructure and services - Urban sanitation - Urban sewerage - Urban water supply
Gender Equity and Mainstreaming Some gender elements
Description

L2477

The Project has three principal thrusts to support research and data collection, institutional development, and infrastructure investment. It comprises three components: Component 1 covers the rehabilitation, expansion, and development of water and sanitation infrastructure for major towns in the northwestern dry zone (Chilaw, Mannar, Puttalam, and Vavuniya), including urban and periurban water supply, and septage management and sanitation. Component 2 provides the foundations to (i) support decentralization of service delivery functions to regional offices; (ii) improve water resource management, coordination, and planning ability; and (iii) increase public awareness. Component 3 is designed to strengthen institutional capacity for project management and implementation activities.

L2977

The proposed project (the Project) to be funded through additional financing of $40 million from ADB s special fund resources will not change the scope of the original project. The Project will supplement funding of the original project to meet cost overruns to ensure that safe drinking water and sanitation services are provided to the four urban areas of Chilaw, Mannar, Puttalam, and Vavuniya and to achieve the full impact envisaged under the original project. The reasons for the cost overruns are (i) original estimates were based on feasibility studies in 2007 and not on detailed designs, (ii) increase in cost 2008 estimates caused by price escalations between 2009 and 2011 , (iii) increase in distribution pipe diameters to cater for future population growth, and (iv) enhanced water treatment improvements for rehabilitation works at the Chilaw and Puttalam water treatment plants. There will be no changes to the sanitation infrastructure and existing arrangements under the original loan will be followed. The closing date of the Project is December 2016, which will be synchronized with the original project after extension of closing date of the original loan .

Project Rationale and Linkage to Country/Regional Strategy

L2477

Sri Lanka's northern dry zone receives little rainfall, mostly within the short winter monsoon. Residents of the region experience income and nonincome poverty. For decades, major towns have accommodated those displaced by the civil war. Water is therefore essential to improve the lives of residents of this region and those affected by years of conflict.

Water schemes in major towns have been stretched beyond their design life and have substantial inefficiencies; coverage is limited to a reduced number of beneficiaries; and standards are often not met, which could impact the health of those served. Where piped drinking water is not available, water is extracted from other sources; however quality is often poor and seldom verified. In addition to limited access, water supplies are usually insufficient, particularly at the end of the dry season. Demand and willingness to pay for water and sanitation are nonetheless high, particularly in Mannar, and Puttalam and Vavuniya. As water supply augmentation is considered in emerging regional centers, wastewater and septage management must be addressed as an integral part of the solution.

The problem analysis reveals that (i) access to basic facilities and services, including water supply and sanitation, is restricted; and existing infrastructure is inadequate, insufficient, and/or damaged; (ii) water resource coordination and planning are weak, and essential policies for water resource management are lacking;

(iii) operation and maintenance of existing assets is suboptimal; and (iv) institutional capacity is poor, and awareness among users and beneficiaries is inadequate.

L2977

Without additional financing, the original project scope cannot be completed due to cost

overruns. Additional financing is being requested at this stage to ensure that all major civil works contracts can be awarded to complete the original project. Any delay in award of these contracts will result in significant delay of project completion.

Impact Improved physical well-being of urban populations in Sri Lanka's northwestern urban dry zone (Vavuniya, Mannar,Puttalam, and Chilaw)
Project Outcome
Description of Outcome Improved water supply and sanitation infrastructure and services northwestern dry zone of Sri Lanka. To this end, the Project will (i) improve and expand infrastructure and services, (ii) strengthen institutions for service delivery and water resource management, and (iii) build project management and implementation capacity.
Progress Toward Outcome

As of March 2015, at an elapsed loan period of 77%, the physical progress is 66.27% and the financial progress is 37.87%.

All the contracts under L2477 are awarded. Under grant G129, 5 contracts to be awarded and under L2977, 2 contracts to be awarded.

Implementation Progress
Description of Project Outputs

1.1 & 1.2 Water resources developed and water supply infrastrcture expanded and rehabilitated

2.2 Water resource management, coordination and planning ability strengthened

2.3 Public awareness increased

3. Project management and implementation capacity built

1.3 Septage management and sanitation improved

2.1 Decentralization of service delivery functions to Regional offices supported

Status of Implementation Progress (Outputs, Activities, and Issues)

1.1 & 1.2 Water resources developed and water supply infrastructure expanded and rehabilitated: -

Other than 2 Contracts in L2977 all major contracts are awarded.

1.3 Septage management and sanitation improved:-

Contracts are awarded for septage disposals for Chilaw, Puttalam, Mannar.

2.1 Decentralization of service delivery functions to regional offices supported :-

NWSDB regional offices are completed. Implementation in progress for support systems established in NWSDB regional offices, Human resource plan developed for NWSDB regional offices, Training programs on public utility and asset management, O&M, financial management, and capital planning, System automation and staff trained, Water supply system modeling prepared and transferred to regional offices, Vavuniya regional office specific training on wastewater treatment and management.

2.2 Water resources management, coordination and planning ability strengthened:-

Implementation is ongoing for Urban council trained on improved septage management; revised on-site sanitation manual reviewed, updated, and printed; training on adequate supervision of construction and siting of pits and soakage/infiltration fields; septage handling, treatment and environmental disposal; River basin plans prepared.

2.3. Public awareness increased:-

Provincial councils and WRB (monitoring and advisory roles strengthened);Programs for (i) groundwater quality monitored across 3 districts, (ii) well registers established, and (iii) mapping completed; Village monitoring committees formed, trained, and actively participating; Database established; Water conservation and environmental outreach program in place.

3. Project management and implementation capacity built:-

Ongoing

Geographical Location Northern and North Western Provinces
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project was reclassified from category B to A during the processing of additional financing.
Involuntary Resettlement On 26 August 2011, ADB sent a letter to the Project Director, Dry Zone Water Supply & Sanitation Project to take immediate action to this letter and several community consultation sessions have been conducted with affected farmers and government agencies such as Government Agent, Divisional Secretariat and Agrarian Services to make them aware on the concerned matter. PMU has taken action to invite selected representatives of Farmer Organization to take part in the meetings conducted on the project. Action plan for resettlement was agreed by all stakeholders. This action plan was fully implemented during 2013. As per the action plan 3 new houses for 3 families to be relocated was constructed and handed over to 3 affected families. Lands allocated to all affected families as agreed in the resettlement plan. Lost harvest compensation was paid to all entitled families and payments to the vulnerable families also paid. Construction works commenced in 2013 as the affected families were satisfied with the compensation package offered. Temporary land permits issued and action has been taken to issue permanent land permits to the affected families.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder consultation was extensive during project preparation. Major workshops were held at the stage of inception, 'lessons learnt' preparation, mid-term and final review. Separate workshops for disclosure and discussion of safeguards documents were conducted in all project towns. In addition, smaller interviews at local level were held with rural communities, urban local bodies, central and provincial governments. NGOs were recruited at the stage of PPTA and were active players in the design of technical options, socio-economic analysis as well as refining the approach to be followed in rural areas. Extensive socio-economic surveys were conducted in rural and urban areas of the districts of Mannar, Vavuniya and Puttlam. Most importantly, extensive consultations were held with farmers and fishermen living in areas adjacent to proposed water sources.
During Project Implementation Participation is a crucial element of the Project particularly in targeting poor and vulnerable households and ensuring Project sustainability. NGOs will be engaged to support the PMU and local governments in mobilizing communities and delivering essential training for CBOs in planning, monitoring, and evaluating sanitation and hygiene improvement. Local authorities will be invited to play an active role in service delivery planning and administration functions and community leaders will be invited to actively participate in the Project's awareness campaign. A participation strategy will be prepared as part of the RRP.
Business Opportunities
Consulting Services

An estimated 871 person-months (86 international, 785 national) of consulting services are needed. Consulting services are

required to (i) facilitate project implementation and management; and (ii) strengthen institutional, administrative, and financial

capacities of the regional offices. NWSDB will recruit two firms, in accordance with ADB's Guidelines on the Use of Consultants

(2007, as amended from time to time). This includes (i) package A, for design and construction supervision support; and

(ii) package B, for institutional development. Package A will include 60 person-months of international expertise and 588 person-months of national. In addition, about 788 person-months of technical and support staff will be provided under package A for 9roject implementation. Package B will include 11 person-months of international expertise and 79 person-months of national; while package C, for water resource management, will include 15

person-months of international expertise and 118 person-months of national. The consulting firms will be engaged using the qualityand cost-based selection method with a standard quality-cost ratio of 80:20.

Procurement

NWSDB's regional offices will carry out most of the procurement; while central and provincial irrigation departments, supported by the project implementation consultants, will take responsibility for procurement activities relating to tank rehabilitation and construction. Procurement of water supply and septage schemes will follow procedures for international and national competitive bidding. Goods and related services, and civil works to be

financed from loan proceeds will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time).

Civil works contracts valued over $3.0 million equivalent and equipment contracts valued over $500,000 equivalent will be undertaken through international competitive bidding procedures, while civil works contracts valued at $3.0 million equivalent or less and equipment packages valued at $500,000 equivalent or less will be procured following national competitive bidding procedures acceptable to ADB. Packages valued at $100,000 equivalent or

less will be under shopping procedures.

Responsible ADB Officer Kamal Dahanayake
Responsible ADB Department South Asia Department
Responsible ADB Division Sri Lanka Resident Mission
Executing Agencies
National Water Supply and Drainage BoardMr. K. L.L. PremanathRURALWATER@LANKA.CCOM.LKP.O. Box 14, Mount Lavinia, Sri Lanka
Timetable
Concept Clearance 18 Apr 2008
Fact Finding 23 Apr 2008 to 12 May 2008
MRM 09 Jul 2008
Approval 28 Nov 2008
Last Review Mission -
PDS Creation Date 25 Jan 2008
Last PDS Update 18 Mar 2015

Grant 0129-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Nov 2008 29 Jun 2009 13 Nov 2009 30 Jun 2014 31 Dec 2016 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 23.22 Cumulative Contract Awards
ADB 23.22 28 Nov 2008 18.12 0.00 78%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 28 Nov 2008 12.34 0.00 53%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - Satisfactory

Grant 0130-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Nov 2008 29 Jun 2009 13 Nov 2009 30 Jun 2014 31 Dec 2016 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 28 Nov 2008 0.00 1.66 83%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 28 Nov 2008 0.00 1.84 92%

Loan 2477-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Nov 2008 29 Jun 2009 13 Nov 2009 30 Jun 2014 31 Dec 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 88.11 Cumulative Contract Awards
ADB 59.78 28 Nov 2008 48.91 0.00 84%
Counterpart 28.33 Cumulative Disbursements
Cofinancing 0.00 28 Nov 2008 29.83 0.00 51%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - Satisfactory

Loan 2977-SRI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2012 13 Feb 2013 08 Oct 2013 31 Dec 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 40.00 18 Dec 2012 33.90 0.00 92%
Counterpart 10.00 Cumulative Disbursements
Cofinancing 0.00 18 Dec 2012 9.12 0.00 25%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Dry Zone Urban Water and Sanitation Project: Environmental Management and Monitoring Report (January-December 2014) Environmental Monitoring Reports Aug 2015
Dry Zone Urban Water and Sanitation Project Environmental Impact Assessments Nov 2012
Dry Zone Urban Water and Sanitation Project - for Mannar Water Supply Initial Environmental Examination Nov 2012
Dry Zone Urban Water and Sanitation Project - for Vavuniya Water Distribution and Septage Initial Environmental Examination Nov 2012
Dry Zone Urban Water and Sanitation Project - for Chilaw Water Treatment System Initial Environmental Examination Nov 2012
Dry Zone Urban Water and Sanitation Project - for Puttalam Water Treatment System Initial Environmental Examination Nov 2012
Dry Zone Urban Water and Sanitation Project: Vavuniya Subprojects Resettlement Plans Sep 2012
Dry Zone Urban Water and Sanitation Project - for Mannar Septage Treatment Plant Initial Environmental Examination Sep 2012
Dry Zone Urban Water and Sanitation Project: Chilaw Subprojects Resettlement Plans Sep 2012
Dry Zone Urban Water and Sanitation Project - for Chilaw Septage Treatment Plant Initial Environmental Examination Sep 2012
Dry Zone Urban Water and Sanitation Project: Mannar Subprojects Resettlement Plans Sep 2012
Dry Zone Urban Water and Sanitation Project: Puttalam Subprojects Resettlement Plans Sep 2012
Dry Zone Urban Water Supply and Sanitation Project: Proposed Surface Water Extraction from a Reservoir Across Per Aru, Vavuniya District Environmental Impact Assessments May 2012

Evaluation Documents

See also: Independent Evaluation

No documents found.


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